my IVA was rejected today

[thekev]

Hi,
Hope you can help, my IVA was rejected today by 2/6 creditors: lloyds tsb and american express. They (creditors) have suggested we sell our house, although it was made clear that there is no point as we have NO equity, please help as not sure what to do.

[gimmewine]

Really sorry to hear that, must feel like someone has knocked the stuffing out of you.

First of all, tonight is too late to do anything about it as is the rest of the weekend so enjoy the sunshine, go for a picnic in the park or any other distraction.

Then, on Monday get in touch with your IP, find out why the proposal was rejected and ask what they advise you to do next. The IP may feel it is possible to represent the proposal if he/she knows the reason for rejection. Alternatively, you can consider a DMP or bankruptcy.

A lot of people go into DMP for a little while so they have time to consider the alternatives. If you go bankrupt and have little or no equity in a property you may be able to buy back the beneficial interest so seek specialist advice on that.

Whatever you do, dont give up hope, there is a debt solution for everyone. Best of luck and keep posting

Ann

[MelanieGiles]

Hi the Kev

Sorry to hear about your proposal being rejected. Knowing the creditors you have mentioned - and bearing in mind that I am just one of the experts on this site and others may a different view - I feel that your mortgage payments are probably too high compared to your salary. Are they more than 40% of salary? It is widely known in the insolvency marketplace that creditors do not like to see this. Ask your IP to speak to KPMG (the peopole who vote for Lloyds) who will be able to confirm the reasons for rejection.

Have you thought about reverting to an interest only mortgage, which would reduced your payments and offer more back to the creditors? Perhaps selling up and moving into cheaper rented accomodation is not so bad? Or as you have no assets, perhaps bankruptcy proceedings or a DMP is a better option.

Let us know what you decided to do.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[JoeB]

Hi

We have Lloyds TSB and Amex so a little worried! - what was your offer?

[JoeB]

Hi Melanie - how strict is this rule? - we will be offering min 40p Lloyds TSB one of the main creditors - income/secured debt is bang on 40 %( due to consolidation loan we took out last year which has proved to be a majour mistake)

[aguise]

Hi ggr
Just to say llyds tsb were our largest creditor and like you we had consolidated within the 18 months before. They didnt even vote. We offered 32p in the pound.

Ang

[JoeB]

Hi aquise

Thanks for this slowed my heart rate down!![;)]

[aguise]

ggr
Glad you feel a bit better. Every situation is different and as they say individual. If your proposal is good and you are doing the best to repay what you can then you have done your utmost.Worrying wont change anything, be positive,regardless of the outcome there will be a solution.

Ang

[DebtDummy]

thekev, sorry to hear about your IVA getting rejected. Please try and relaxthere isn't anything you can do over the Bank Holiday weekend. Easier said than doing,but do try. Discuss the matter with your IP Tuesday. I hope all works out for you. You are doing what you can to repay the creditors.

Take care

All I have left is my humour.

View my blog http://www.debtdummybankruwoman.blogs.iva.co.uk.

[tracy.h]

Hi thekev
exactley the same happened to me,my offer was 40p in the £ but because my mortgage payments were 40% of our salary kpmg who voted on behalf of lloyds barclaycard and lombard also wanted us to sell our home,it seemed ironic as they were allowing us £800 a month to rent only £100 a month different to our mortgage payments and had little equity in the property,so iva failed.
But after taking Melanies advise we are now putting mortgage on interest only that will make a big difference to amount of disposable income when going down the iva road again,to be honest never understood why former ip never suggested this in the first place would have saved a lot of stress,but you live and learn thank god i found this forum and have been lucky to get advise from a genuine ip.
You have to remember there is always a solution to your situation,if you do not want to sell your home then now you have had your iva rejected you can talk with your ip and once you find out what the reasons for rejection were you will then be in a better posistion in understanding what can be done.
I hope you will get the answers you are looking for and find a way forward.Let us know how you get on.
Take care

Tracy